Name: Rose Abigail G.

Lerio Date: December 12, 2022

Course & Year Level: DM-2 Subject: ELECT 2
Assignment # 1 (Finals) Instructor: Ms. Christy Paquibot

Define the following:

1. Sole Proprietor - an individual who is the only owner of a business and is eligible to keep all cash flow
after tax payments but is liable including all shortfalls. This is the most basic type of business entity. The
sole proprietorship does not have legal status. The business does not exist apart from the proprietor, who
is the owner. The sole proprietor has the complete and unconditional control over his or her business.
2. Partnership - is a type of business in which two or more individuals share ownership, authority as well
as obligation for the company's management and its income or losses. Common partnership business
examples include law firms, physician groups, real estate investment firms and accounting groups.
3. Corporation - is a company owned by its shareholders, who designate a board of directors to supervise
the company's efficiency. The corporation is responsible for the company's actions and financial affairs;
the shareholders are not. Corporations, like other types of businesses, offer additional personal
guarantees for their owners, known as shareholders. Companies hoping to increase funds from investors
are going to have higher chance as a corporation, which could also sell equity stake.

4. What are the 4 M’s of production and Define the following.

• The factors involved in the input and the production process are usually referred to as the four
Ms of production - manpower, method, machine, and materials.
o I. Manpower - simply refers to the human workforce involved in the manufacture of
products. It is considered as the most critical and important factor of production.
o II. Method or Production Method - refers to the process or technique of converting raw
materials to finished goods. The raw material undergoes several stages before it is
completed and becomes ready for delivery to the target consumers.
o III. Machine - refers to the manufacturing equipment used in the production of goods or
delivery of services. In the process of selecting the type of equipment to purchase, the
entrepreneur may consider the following important elements: types of products to be
produced, production system to be adopted, cost of the equipment, capacity of the
equipment, availability of spare parts in the local market, efficiency of the equipment,
and the skills required in running the equipment.
o IV. Materials - simply refers to the raw materials needed in the production of a product.
Materials basically form part of the finished product. The entrepreneur may consider the
following important factors in the selection of raw materials: cost, quality, availability,
credibility of suppliers, waste that the raw material may produce.

5. What is Business Plan?

A business plan is a vital written document that describes and summarizes your company's future. Every
company should have a business plan. The strategy and key goals for getting from where you are now to
where you want to be in the future should be explained in the plan. A business plan is utilized to support
an organization's management by stating goals, how they will be fulfilled, and when they should be met.
The plan will also help to summarize what the business should be about, why it takes place, and where it
expects to be able to go.